New Delhi, Feb 9, 2026: The Confederation of Indian Textile Industry (CITI) urges the authorities to extend the Rebate of State and Central Taxes and Levies (RoSCTL) scheme beyond March 31, 2026, for a minimum of five years.
CITI would also like to request that the rates under the RoSCTL scheme be revised to reflect sustained cost inflation and the currently unreimbursed embedded taxes, such as stamp duties, renewable energy equipment duties, and service-linked levies.
Additionally, CITI calls for:
❖ Removal or revision of the rebate caps that are coming in the way of effectively realising the benefits of the scheme (especially due to the depreciation in currency).
❖ Extension of the RoSCTL scheme’s coverage to SEZs, EOUs, advance authorisation holders and e-commerce exports, and
❖ Introduction of Direct Benefit Transfer (DBT) or expansion of scrip usage to improve realisation, particularly for MSME exporters.
The objective of the RoSCTL framework is to compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/ garments and made-ups by way of rebate. The RoSCTL scheme is a tax-neutrality mechanism, not a subsidy, and is aligned with the global principle that exports should be zero-rated.
Explaining the rationale behind seeking the continuance of the RoSCTL scheme, CITI Chairman Shri Ashwin Chandran said:
“CITI believes that a predictable policy framework is critical for enabling companies in the apparel and made-ups sectors to plan investments, remain competitive in global markets, and prevent job losses, besides reinforcing India’s position as a reliable global sourcing destination at a time when the textile and apparel sector continues to be buffeted by global headwinds.”
One of India’s most labour-intensive and globally exposed manufacturing segments, the apparel and made-ups sector provides direct employment to over 11 million people and is a huge foreign exchange earner for the country. Exports of apparel and made-ups from India are worth around $22 billion.
Industry experience indicates that without the RoSCTL scheme, export volumes could have declined anywhere between 25%–50% during recent periods of global stress. Further, over the last five years, while input costs have risen by 3%–4% annually, FOB
prices have remained largely stagnant, and the RoSCTL scheme has helped bridge this widening cost gap.
Most importantly, the scheme has safeguarded over 8 lakh jobs during the last five years, making it one of the most impactful employment-protection measures for manufacturing exports.
India’s textile and apparel exports have been adversely affected by the 50% US tariff imposed on Indian goods, effective August 27, 2025. The US is the single-largest market for India’s textile and apparel exports.
India aims to more than double its textile and apparel exports to $100 billion by 2030.
